Klarna uses AI to earn $1 million per employee
Klarna, a Buy-Now-Pay-Later company, shared that it achieved impressive sales growth in the second quarter, culminating in revenue of $1 million per employee.
The Swedish firm reported a 20% growth rate in sales. The total revenue for the second quarter reached $823 million.
Moreover, Klarna’s adjusted operating profit rose to $29 million, a significant increase from $3 million in the previous quarter.
“The integration of AI is proving to yield substantial and practical benefits,” the company noted in its quarterly report, citing a 46% year-on-year growth in revenue per employee.
Klarna has effectively harnessed AI to boost productivity, which, interestingly, has resulted in a reduction of two jobs out of every five over the past two years. The company mentioned, “This shift showcases AI’s growing role in minimizing tedious manual work throughout Klarna.”
Eurozone’s industrial output will shrink more than expected
Eurozone industrial production saw a 1.3% dip in June, according to data from Eurostat published on Thursday.
Economists had anticipated a smaller drop of 1%.
This decline is particularly notable as it comes after a 1.1% increase in May, driven by slowdowns in multiple countries, including Germany, as well as a downturn in consumer goods output.
Specifically, Germany’s industrial production fell by 2.3% for the month.
Looking ahead, Andrew Kenningham, Chief European Economist at Capital Economics, expressed concerns about slower growth for industrial production and overall economic activity in the latter half of the year. He added that while Germany might see a slight boost from slower fiscal policies, it won’t have a lasting impact.
European stocks open higher
In Thursday’s trading session, European stocks opened positively, with the Pan-European Stoxx 600 index gaining 0.2%, most sectors showing growth.
Markets in Germany and France increased by about 0.3%, while London’s FTSE 100 index slipped by 0.2%.
Carlsberg’s second quarter sales miss expectations for soft volume
On Thursday, Danish brewer Carlsberg announced that its second-quarter sales fell slightly below expectations, although they maintained their 2025 guidance.
The company reported revenues of 25.7 billion Danish kroner (approximately $4 billion) for the three months ending June 30th.
However, their operating profit for the first half of the year did not meet the forecast of 7.335 billion kroner, and organic volume growth declined by 1.7%, partly due to the discontinuation of the San Miguel brand.
CEO Jacob Aarup Andersen remarked on consumer hesitance to increase volumes, noting that “the volume isn’t flowing as it used to a few years back.”
Despite this, Carlsberg raised its full-year profit guidance from a growth forecast of 3% to 5%, emphasizing strong performance in its premium and alcohol-free products.
A sharp UK rebound hope “highly likely to be destroyed,” says the economist
The UK economy rose by 0.4% in June, bouncing back from a contraction of 0.1% in May, according to preliminary data released today.
Senior economist George Brown from Schroders attributed this to a downturn in production following tariff frontloading earlier in the year.
He cautioned that while growth might seem easier in the third quarter, ongoing issues in global trade could inhibit quick rebounds. “The labor market is softer, and constraints in capacity are creating inflationary pressures, making a swift recovery unlikely,” he observed.
The UK economy will grow by 0.3% more than expected in the second quarter
In a surprising turn, the UK economy expanded by 0.3% in the second quarter, exceeding expectations. Preliminary estimates from the UK’s National Statistics Bureau indicated economists had projected a mere 0.1% growth, following a notable increase of 0.7% in the previous quarter.
After a 0.1% contraction in May, the economy’s growth of 0.4% in June is seen as unable to fully shake off the challenges posed by U.S. tariffs and ongoing business uncertainty.
How Putin can beat Trump when Trump meets
Although Russian President Vladimir Putin’s standing in the West is quite low, analysts emphasize that he’s a seasoned and adept politician, deserving of attention.
As he and Donald Trump meet to discuss the war in Ukraine, there’s skepticism among those close to Moscow’s leadership about the likelihood of reaching a lasting agreement.
This is the opening call
Good morning from London. Today marks the beginning of the live blog covering European financial markets and business news.
The futures data from IG points to a mostly positive start for European indices. The CAC40 and German DAX are expected to open around flat, while Italian FTSE MIBs look to rise slightly.
Investor sentiment remains cautious ahead of key economic indicators from major regional economies, including readings from the UK and EU.
The European markets closed on a high note yesterday, with the Pan-European Stoxx 600 index up by 0.55%, buoyed by record performances from the S&P 500 and NASDAQ. Market watchers are bracing for inflation data that will play a crucial role in the Federal Reserve’s interest rate decisions in September.
What to look at on Thursday
Significant revenue releases are expected today from various companies.
In the UK, GDP figures for the second quarter will be published at 7 AM local time, followed by French inflation data shortly after, and then employment and GDP data from the EU at 10 AM.
